Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.21.2
Investments
9 Months Ended
Sep. 30, 2021
Investments  
Investments

3. Investments

The following table provides the Company’s investment income, and realized gains on investments for fiscal 2021:

Investment income, net of investment expenses

$

493

Realized gains on investments

$

46

Realized losses on investments

$

(91)

The following table provides the amortized cost, fair value and unrealized gains and (losses) of the Company’s investment securities:

September 30, 2021

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. government obligations

$

10,983

$

29

$

(27)

$

10,985

Obligations of states, municipalities and political subdivisions

4,378

5

(12)

4,371

Corporate bonds

 

32,208

 

183

 

(48)

 

32,343

Residential and commercial mortgage-backed securities

15,380

63

(55)

15,388

Other loan-backed and structured securities

5,703

11

(13)

5,701

Total debt securities

$

68,652

$

291

$

(155)

$

68,788

The amortized cost and fair value of securities at September 30, 2021, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2021

Remaining Time to Maturity

    

Amortized Cost

    

Fair Value

Due in one year or less

$

8,741

$

8,731

Due after one year through five years

20,828

20,841

Due after five years through ten years

15,696

15,808

Due after ten years

 

2,304

 

2,319

Residential and commercial mortgage-backed securities

15,380

15,388

Other loan-backed and structured securities

5,703

5,701

Total

$

68,652

$

68,788

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporarily impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including:

- the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;
- the length of time and the extent to which the market value of the security has been below its cost or amortized cost;
- general market conditions and industry or sector specific factors;
- nonpayment by the issuer of its contractually obligated interest and principal payments; and
- the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss position at September 30, 2021, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At September 30, 2021

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. government obligations

$

(27)

$

6,073

$

$

$

(27)

$

6,073

Obligations of states, municipalities and political subdivisions

(12)

1,274

(12)

1,274

Industrial and miscellaneous

(48)

11,978

(48)

11,978

Residential and commercial mortgage-backed securities

(55)

9,108

(55)

9,108

Other loan-backed and structured securities

(13)

3,450

(13)

3,450

Total securities

$

(155)

$

31,883

$

$

$

(155)

$

31,883

At September 30, 2021, there were 260 securities in an unrealized loss position. Of these securities, there were none that had been in an unrealized loss position for 12 months or longer.

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at September 30, 2021.